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Why Are Insurance Companies Getting Into ETFs?


Why Are Insurance Companies Getting Into ETFs?
June 1, 2021
Insurance companies were big fans of fixed income ETFs in 2020, according to a CFRA “Funds in Focus” report.
Fixed income ETFs got a helping hand in 2020 during the height of the pandemic. To shore up the bond markets, the Federal Reserve stepped in to help prevent credit defaults.
The Fed cast a wide net into the debt market, picking up even risky high-yield assets. This included bond ETFs that focused on highly leveraged corporate debt that was less than investment grade.
Investors tailed the Fed’s actions by piling into fixed income ETFs as a safe haven scramble amid the equity volatility. Based on the CFRA data, insurance companies were no different. ....

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Minimize Duration Risk in Corporate Bonds with the VCSH ETF


Minimize Duration Risk in Corporate Bonds with the VCSH ETF
May 18, 2021
Fixed income investors don’t have to venture too far out onto the yield curve in order to extract yield. They can do so with short-term corporate bond funds that minimize duration risk. One prominent example is the 
While corporate bonds may be subject to more credit risk than their government debt counterparts, they’ve been surprisingly steady during the pandemic.
“Corporate bond markets have proven remarkably resilient in the face of the sharp contraction caused by the Covid-19 pandemic,” a Forbes article said. “Bond issuance increased substantially in the last week of March 2020 and has remained substantially above average pre-pandemic levels. For example, between March and June 2020, $502 billion of corporate bonds were issued compared to just $151 billion in 2019 and $204 billion in 2018.” ....

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